Lessons to Learn About Setbacks and How to Use Them to Your Advantage

Entrepreneurship is practically guaranteed to be laden with setbacks. After founding Tayne Law Group, P.C. under the original name The Law Offices of Leslie H. Tayne P.C. in 2001 and recently expanding to a franchise business model, I have of course seen my share of setbacks. Though obstacles in business are common, finding ways to use them to your advantage, so you stay afloat when weathering turbulent times is key. There is no manual for guaranteed success when starting and running a business. Even the world’s most successful business leaders have endured enormous setbacks and business failures. We’ve all experienced challenges in life and business; however, the following questions and tips may help with finding the light at the end of the tunnel for overcoming some setbacks you may be facing and ways for using them to your advantage.

Assess Your Expectations

Part of making a business plan is setting realistic expectations for it – some of these include sales, goals, when you’ll turn a profit, members of your operations team, etc. If you find your business is not reaching its goals or expanding the way you thought it is important to take a step back and re-evaluate the situation. You need to ask yourself some of the following questions: what’s worked and what hasn’t thus far, were my goals realistic and well thought-out, and did I give it my all for reaching the goals I set. Once you have answered these questions, you should have a better perspective for deciding what your next steps should be and whether your setbacks lie in the performance of your business, the goals themselves, or a combination of the two. Addressing the issue head-on is critical. Being able to detect the issue has to come before working on a solution. While it could be tough to admit you have to be honest in evaluating if there’s any weakness in your business that you’re ignoring so you can move forward. Also, don’t overlook researching how other businesses in both inside and outside your industry are handling the problems you may be facing.

Mixing Your Business with Pleasure

A classic mistake that various businesspeople make when starting or running a company is failing to keep business and personal finances separate. If you are just opening your business, I strongly recommend establishing a separate business credit card and bank account to help you stay organized. This will improve your ability to easily track your income and expenses while also making the tax time process smoother for you. Additionally, this helps to protect you if things don’t go as financially well as planned. Often people make the mistake of blurring the lines between business and personal finances or putting all of their personal savings into their business, which can backfire and leave you financially unsecure. It is important to keep your personal and business finances separate to avoid putting yourself at financial risk. Also, ensure you have a robust emergency fund to shield you in case your business becomes unable to afford to pay out the income you had expected.

Have a Backup Plan

Have you established a plan b? Having a backup plan is essential for when things go unexpectedly. Setting limits in terms of time and money along with having a contingency plan and exit strategy built into your business plan can help you avoid entirely damaging your financial wellbeing. When creating a contingency plan, factor in all possible risk and threats your business may face. This should include natural disasters, potential issues with employees, and a weakened economy as well as a loss of data, any of which could prevent you from reaching sales goals or even being operational. You have to be prepared for loss of key employees, loss of big accounts to even the event of computers going down and causing loss of business. Incorporating a backup plan into your business plan will ensure you are ready should the unexpected happen to you, so you know what to do and how to recover should things go south.

Don’t Be Scared to Walk Away

When starting a business, you want to minimize financial risk as much as possible. If your business’ setbacks are becoming too much of a financial drain for you, don’t be afraid to walk away. In many cases, you may be able to ride it out and endure the rough seas as you adjust the sail, but don’t let certain setback end up digging yourself into a deep financial hole that will end up destroying your financial stability.

The ugly truth is when it comes to business it’s a rarity that things will go exactly as planned and the best thing you can do for you and your business is to plan for the unexpected. By being prepared, you will be able to embrace these setbacks and use them to your advantage. While you can’t predict exactly how thing will turn out, in staying one step ahead can reverse disappointment into action and recovery from potential financial setbacks.

About The Author

Leslie Tayne

Leslie H. Tayne, Esq. has nearly two decades of experience in the practice area of consumer and business financial debt-related services. She launched her law firm, Tayne Law Group, P.C., formerly Law Offices Of Leslie H. Tayne P.C., in 2001, which is one of the few New York State law practices concentrating in debt management, debt resolution and alternatives to bankruptcy for consumers, business owners and professionals who are in need of help with managing finances. Leslie and her firm deliver comprehensive consulting and support services for clients in all areas of debt including credit cards, unsecured loans, lines of credit and consumer based loans as well as business and student loan matters. Leslie is highly accomplished in negotiation and settlements with large national banks, credit unions, collection agencies and multiple creditor legal representatives.Her mission is to reshape debt resolution alternatives by giving clients a supportive and reliable environment built on experience, trust and results that will not only relieve clients of the stress from debts but also the burden of the never-ending debt cycle. Leslie’s practice has grown since its establishment, with offices now in Manhattan, White Plains and Mount Kisco and continues to expand.Eager to share her counsel and expertise, Leslie is frequently invited to participate in speaking engagements and is often a volunteer guest presenter at colleges, bar associations and not-for-profits. Continuing her commitment to public service, she has been actively involved with the Guide Dog Foundation of Smithtown since 2011 as a volunteer who cares for and trains puppies that eventually become service dogs for individuals in need. Leslie is also Chair for the Nassau County Bar Association’s Attorney Accountant Committee, treasurer with the Jewish Lawyers Association of Nassau County, and is the Chair for Nassau Suffolk Law Services, Inc.A highly respected consumer and business debt-related expert, Leslie is often called upon by the media to comment on a variety of financial topics. She has written content for and been interviewed by a variety of national and local news outlets including Inc. Magazine, Forbes, The Huffington Post, Fox News, CNBC, Newsday, The New York Daily News, as well as many, many more.Always ready to donate her time and services when and where needed, Leslie was responsible for launching a specialized Hurricane Sandy Hotline in the aftermath of the devastating storm where she and her staff responded to questions and concerns among the many inflicted by the storm free of charge while providing free financial and debt advice. Leslie also devotes her time to the Long Island Against Domestic Violence organization speaking regularly to their support group on budgeting techniques and money saving strategies.Most recently, Leslie has been selected to Superlawyers for 2015 and 2016, voted Top 50 Most Influential Women in Business, awarded 2016 Top Legal Eagle by Long Island Pulse Magazine and the Tayne law Group has been voted Bethpage Federal Credit Union’s best debt consolidation service for the last 4 years in a row.